Exh 7AAGENDA ITEM #7A
OCTOBER 8, 2001
CITY OF ATLANTIC BEACH
CITY COMMISSIONER MEETING
STAFF REPORT
AGENDA ITEM: Public hearing, final reading, and adoption of Ordinance 58-01-28
amending Chapter 2, Administration, Article VI, Employee
Benefits, Division 3, General Employee Retirement System and
Division 4, Police Officers' Retirement System, providing a one
time five percent (5%) COLA to retirees, and beneficiaries, who
retired prior to January 1, 200E
DATE: October 2, 2001
SUBMITTED BY: George Foster, Human Resource Manager
BACKGROUND: On September 24,2001, the City Commission conducted a first
reading of proposed Ordinance No. 58-01-28 to implement a 5%
COLA for retirees, and beneficiaries, who retired prior to January
1, 2001. This action was previously recommended by the Pension
Board and discussed by the City Commissioners during the budget
process. Retirement prior to January 1st is being utilized to be
consistent with the previous 1997 COLA and is more in line with
the information as utilized for the actuarial impact cost statement.
RECOMMENDATION: Conduct public hearing, final reading, and adopt Ordinance 58-01-
28.
FUNDING: The immediate cost for this action will be from current pension
fund assets. Based upon a July 1999 actuarial impact statement,
the City's annual contribution rates will increase approximately
$8,412, which will be an increase. for the General Employee
Pension Plan of approximately $4,032 (0.18% of current salary)
and for the Police Officers' Pensions Plan of approximately $4,380
(0.43% of current salary).
CITY MANAGER:
ATTACHMENT: Proposed
AGENDA ITEM #7A
OCTOBER 8, 2001
ORDINANCE NO. 58-01-28
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
FLORIDA, AMENDING CHAPTER 2, ADMINISTRATION,
ARTICLE VI, EMPLOYEE BENEFITS, DIVISION 3,
GENERAL EMPLOYEE RETIREMENT SYSTEM, SEC. 2-
281(b), TO PROVIDE GENERAL RETIREES WITH A FIVE
PERCENT (5%) COST OF LIVING ADJUSTMENT; AND
DIVISION 4, SEC. 2-310.10(b) TO PROVIDE POLICE
RETIREES WITH A FIVE PERCENT (5%) COST OF LIVING
ADJUSTMENT; PROVIDING FOR A SAVINGS CLAUSE,
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Atlantic Beach, Florida has an interest in the retirement of its
employees and wishes to improve the retirement system whenever feasible; :and
WHEREAS, the retired members and beneficiaries of the City of Atlantic Beach Employees
Retirement System have not received any cost of living adjustment since January 1997, the City's
pension plan is hereby amended as follows:
NOW THEREFORE, BE IT ENACTED BY THE CITY COTMISSION OF THE
CITY OF ATLANTIC BEACH, FLORIDA, AS FOLLOWS:
Section 1: Divison 3, General Employee Retirement System, Section 2-281(b), Cost-of-
living adjustment is amended as follows:
Sec.2-281. Amount of level straight life pension.
(b} Cost-of-living adjustment. All retirement system members and beneficiaries who retired
prior to January 1, 1997, shall receive a one time cost-of-living adjustment, which shall be in an
amount equal to three (3) percent of the benefits paid to such retired members and beneficiaries
during the immediately preceding month. Effective October 2001, all retirement system members
and beneficiaries who retired prior to January 1, 2001, shall receive a .one time cost-of-livins
adjustment, which shall be in an amount equal to five {51 percent of the benefits naid to such retired
members and beneficiaries durine the immediately orecedine month.
Section 2: Division 4, Police Officers' Retirement System, Section 2-310.10(b), Cost-of-
living adjustment is amended as follows:
Sec. 2-310.10. Calculation of pension benefit.
(b) Cost-of-living adjustment. All retirement system members and beneficiaries who retired
prior to January 1, 1997, shall receive a one time cost-of-living adjustment, which shall be in an
AGENDA ITEM #7A
OCTOBER 8, 2001
amount equal to three (3) percent of the benefits paid to such retired members and beneficiaries
during the immediately preceding month. Effective October 2001., all retirement svstem members
and beneficiaries who retired prior to January 1; 2001, shall receive a one time cost-of-living
adjustment, which shall be in an amount equal to five (51 percent of the benefits paid to such retired
members and beneficiaries during the immediately orecedin~ month.
Section 3c The provisions adopted herein shallprevail over any existing sections ofthe
Atlantic Beach Code to the extent said existing sections are contrary or inconsistent herewith.
Section 4: Severability. If any section, sentence, clause, word, orphase ofthis Ordinance
is held to be invalid or unconstitutional by a court of competent jurisdiction, then said holding shall
in no way affect the validity of the remaining portions of this Ordinance.
Section 5: This Ordinance shall take effect immediately upon .its final passage and
adoption and be effective October 2001.
PASSED by the City Commission on second and final reading this , day of
2001.
ATTEST:
City Clerk
Mayor, Presiding Officer
Approved as to form and correctness:
City Attorney
LEGEND: Underlining is new lansuage.
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